{"id":56196,"date":"2024-04-16T00:40:28","date_gmt":"2024-04-16T00:40:28","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=56196"},"modified":"2024-04-16T00:40:28","modified_gmt":"2024-04-16T00:40:28","slug":"an-investment-outlay-cash-flow-is-rs-2000-an-operating-cash-flow-is-rs-1500-and-salvage-cash-flow-is-rs-3000-then-free-cash-flow-would-be","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/an-investment-outlay-cash-flow-is-rs-2000-an-operating-cash-flow-is-rs-1500-and-salvage-cash-flow-is-rs-3000-then-free-cash-flow-would-be\/","title":{"rendered":"An investment outlay cash flow is Rs 2000, an operating cash flow is Rs 1500 and salvage cash flow is Rs 3000 then free cash flow would be"},"content":{"rendered":"<p>[amp_mcq option1=&#8221;Rs 500.00&#8243; option2=&#8221;Rs 2,500.00&#8243; option3=&#8221;Rs 650.00&#8243; option4=&#8221;Rs 6,500.00&#8243; correct=&#8221;option2&#8243;]<!--more--><\/p>\n<p>The correct answer is: B. Rs 2,500.00<\/p>\n<p>Free cash flow is the cash flow available to a company after accounting for all expenses and investments. It is calculated by subtracting the investment outlay from the operating cash flow and adding the salvage cash flow.<\/p>\n<p>In this case, the investment outlay is Rs 2000, the operating cash flow is Rs 1500, and the salvage cash flow is Rs 3000. Therefore, the free cash flow is:<\/p>\n<p>Free cash flow = Operating cash flow &#8211; Investment outlay + Salvage cash flow<br \/>\n= Rs 1500 &#8211; Rs 2000 + Rs 3000<br \/>\n= Rs 2500<\/p>\n<p>Option A is incorrect because it is the operating cash flow, not the free cash flow. Option C is incorrect because it is the difference between the operating cash flow and the investment outlay, not the free cash flow. Option D is incorrect because it is the sum of the operating cash flow, the investment outlay, and the salvage cash flow, not the free cash flow.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;Rs 500.00&#8243; option2=&#8221;Rs 2,500.00&#8243; option3=&#8221;Rs 650.00&#8243; option4=&#8221;Rs 6,500.00&#8243; correct=&#8221;option2&#8243;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[945],"tags":[],"class_list":["post-56196","post","type-post","status-publish","format-standard","hentry","category-financial-management","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>An investment outlay cash flow is Rs 2000, an operating cash flow is Rs 1500 and salvage cash flow is Rs 3000 then free cash flow would be<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/an-investment-outlay-cash-flow-is-rs-2000-an-operating-cash-flow-is-rs-1500-and-salvage-cash-flow-is-rs-3000-then-free-cash-flow-would-be\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"An investment outlay cash flow is Rs 2000, an operating cash flow is Rs 1500 and salvage cash flow is Rs 3000 then free cash flow would be\" \/>\n<meta property=\"og:description\" content=\"[amp_mcq option1=&#8221;Rs 500.00&#8243; 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